What are the top 10 global challenges in digital transformation?

Answer from top 10 papers

Digital transformation is a multifaceted process that presents a range of challenges for organizations worldwide. The literature identifies several key challenges that are commonly encountered:
1. **Port Infrastructure and Interconnection**: The complexity of port operations and the need for interconnection between various systems pose significant challenges (Mahmood et al., 2019).
2. **Rapid Technological Changes**: Organizations struggle with the pace of technological change, which can render digital transformation efforts obsolete quickly (Furjan et al., 2020).
3. **Organizational Resistance and Skills Gap**: Traditional businesses often face resistance to change and a lack of digital skills and expertise (Almeida, 2023).
4. **Legacy Systems and Cultural Barriers**: The presence of outdated legacy systems and cultural barriers within organizations can hinder digital transformation (Almeida, 2023).
5. **Cybersecurity and Data Privacy**: As digitalization advances, cybersecurity risks and data privacy concerns become more pronounced (Philippart, 2022).
6. **Regulatory Compliance**: Adhering to regulatory requirements adds complexity to digital transformation initiatives (Philippart, 2022).
7. **Governance and Culture**: Effective governance and a supportive culture are critical for the success of digital transformation, yet they are often challenging to establish (Syamsuddin et al., 2024).
8. **Market Evolution and Customer Demands**: Changing market conditions and evolving customer expectations require organizations to adapt quickly (Sandkuhl et al., 2020).
9. **Alignment of People, Process, and Technology**: Aligning these elements is crucial for successful digital transformation but is often difficult to achieve (Furjan et al., 2020).
10. **Barriers to Digital Servitization**: Manufacturing SMEs face organizational and customer-related barriers in their move toward digital servitization (Sandkuhl et al., 2019).
In summary, these challenges encompass technical, organizational, and strategic aspects of digital transformation. Addressing them requires a comprehensive approach that considers infrastructure, technology, human resources, culture, and market dynamics. By recognizing and proactively managing these challenges, organizations can better position themselves to leverage the benefits of digital transformation and maintain competitiveness in the global market (Almeida, 2023; Furjan et al., 2020; Mahmood et al., 2019; Philippart, 2022; Sandkuhl et al., 2019; Sandkuhl et al., 2020; Syamsuddin et al., 2024).

Source Papers

Digital organizational transformation issues, challenges and impact: A systematic literature review of a decade

The Digital Transformation phenomenon always tends to be complicated, ambiguous, challenging, and non-routine managerial tasks for organizations. The success rate of such digital transformation is very low due to rapid changes in technologies. Digital transformation through these technologies demands a fundamental change in organization processes, technology and behavior of the people. This broad change results in different socio-technical issues and challenges. The primary objective of the study is to discover issues, challenges and impact/benefits during digital transformation, investigated by various researchers. For this purpose, a systematic literature review (SLR) as prescribed by Levy and Ellis (2005) helped in identifying the challenges of digital transformation. The articles published from 2008 to 2018 were selected and analyzed. The findings of this research reflect the importance of developing an effective digital transformation strategy in organizations. The proactive strategy regarding people, process, technology, and most importantly their alignment in the organization is found critical in executing such transformation initiative in the organization. The planned efforts regarding knowledge management also played an important role in executing and sustaining such transformation initiatives in the organizations. Moreover, value creation, operational efficiency, competitive advantage, customer relationship, and new business model emerged as a vital motivational factor and outcome for digital transformation. Keywords: Digital transformation, digital transformation issues and challenges, systematic literature review, digital transformation benefits/impact.

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Understanding Digital Transformation Initiatives: Case Studies Analysis

Abstract Background: Complexity of the digital transformation (Digital Transformation) paradigm and its relation to the fourth technological revolution face companies with serious challenges when it comes to keeping up with the competition or becoming a leader in operating industries. Objectives: The goal of our research is to systematize, analyse and evaluate technological and business concepts of Digital Transformation, in order to identify and investigate Digital Transformation initiatives in Croatia. Methods/Approach: To accomplish this goal, we used a multiple-case study approach to gather data from experts who participated in successful Digital Transformation initiatives. Results: Questionnaires were developed and used to gather both, qualitative background and technology-business related data relevant for Digital Transformation initiatives’ success, discussed in the last part of the paper. The limitation of this study is a relatively small number of case studies (6), as well as its local coverage, resulting therefore with conclusions, which will serve as a base for future studies. Conclusions: There are several background, business, and technology-related concepts or factors relevant to Digital Transformation initiatives: profile and involvement of external Digital Transformation experts; the transformation drivers and expectations. In achieving most significant business concepts for business transformation, no single one right combination of technological concepts could be explicitly determined.

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Open Access
Digitalization in Global Trade: Opportunities and Challenges for Investment

This paper explores the evolving landscape of global trade and customs in the context of digitalization and the opportunities and challenges it presents for investment. The rapid advancement of technology and the digital revolution have significantly transformed the way businesses engage in international trade, leading to increased efficiency, streamlined processes, and enhanced global connectivity. However, these advancements also bring forth new complexities, such as cybersecurity risks, data privacy concerns, and regulatory compliance issues. We examine the key areas where investment in digital technologies can drive innovation, efficiency, and competitiveness in global trade and customs. It discusses the potential benefits of implementing technologies such as blockchain, artificial intelligence (AI), Internet of Things (IoT), and cloud computing in areas like supply chain management, customs compliance, trade finance, and risk management. The paper also explores case studies and real-world examples of successful digital transformation initiatives in the global trade and customs domain. The study emphasizes the importance of strategic investment in digital technologies as a means to unlock the full potential of global trade and customs. It provides insights and recommendations for policymakers, industry stakeholders, and investors on navigating the evolving landscape, seizing opportunities, and mitigating risks associated with digitalization in the realm of international trade and customs. Global trade, Customs, Digitalization, Investment, Blockchain, Artificial Intelligence, Supply chain management, Risk management, Cybersecurity

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Adapting to Digital Transformation: Challenges and Strategies for Traditional Businesses

In the era of digital transformation, traditional businesses face numerous challenges in adapting to the evolving landscape of technology and market dynamics. This article explores the challenges and strategies encountered by traditional businesses as they navigate the process of digital transformation. Utilizing qualitative methods such as literature review and library research, this study investigates the key factors influencing the success or failure of digital transformation initiatives in traditional business settings.
 The literature review reveals several challenges that traditional businesses encounter during the digital transformation process, including organizational resistance to change, lack of digital skills and expertise, legacy systems, and cultural barriers. Moreover, navigating the complexities of data management, cybersecurity threats, and regulatory compliance adds further complexity to the digital transformation journey.
 In response to these challenges, traditional businesses adopt various strategies to facilitate their digital transformation efforts. These strategies include investing in digital infrastructure and technology, upskilling and reskilling employees, fostering a culture of innovation and agility, forging strategic partnerships with technology firms, and embracing customer-centric approaches.
 Furthermore, successful digital transformation requires effective leadership, clear communication, and a willingness to experiment and learn from failures. By embracing a growth mindset and leveraging the power of digital technologies, traditional businesses can unlock new opportunities for growth, innovation, and competitive advantage in the digital age.
 In conclusion, this study highlights the importance of proactive adaptation to digital transformation for traditional businesses to remain relevant and competitive in today's rapidly changing business environment. By understanding the challenges and implementing appropriate strategies, traditional businesses can successfully navigate the digital landscape and thrive in the digital economy.

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Open Access
Covid-19 Accelerates Digital Transformation in Industries: Challenges, Issues, Barriers and Problems in Transformation

Market emphasizes the need for a strategic view of the digital transformation of business, where transformation signifies a trend that allows changes in the core business processes and contributes to the development of sustainable business models. Complexity of the business transformation process affects the emergence of certain challenges and problems that need to be overcome on the way to creating innovative business models that will enable the use of full organizational potential. Purpose of this research is to delineate the various difficulties in digital transformation and determine what are the challenges, issues, barriers, and problems that organizations face in the desire to transform business. Paper presents a review of the literature of relevant research bases, where a qualitative and quantitative analysis of the results was made. Results show the frequency of occurrence of certain difficulties in DT within four categories - challenges, issues, barriers and problems, but also the occurrence of difficulties in the inevitable transformation due to the Covid-19 pandemic. It can be said that the pandemic has affected rapid adjustments, but also changes in the business models of organizations and that it has indirectly initiated digital transformation projects within organizations accompanied by various challenges, issues, barriers, and problems.

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Open Access